Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,000 rackets and sold 5,900. Each racket was sold at a price of $100. Fixed overhead costs are $98,000 for the year, and fixed selling and administrative costs are $66,200 for the year. The company also reports the following per unit variable costs for the year: Direct materials Direct labor Variable overhead Variable selling and administrative expenses $ 12.30 8.30 5.40 3.00 Required: Prepare an income statement under absorption costing. ACES INCORPORATED Income Statement (Absorption Costing) $ 0 Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,200 rackets and sold 5,100. Each racket was sold at a price of $92. Fixed overhead costs are $81,840 for the year, and fixed selling and administrative costs are $65,400 for the year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses $ 12.06 8.06 5.08 2.20 Required: Prepare an income statement under variable costing. ACES INCORPORATED Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold Fixed overhead Income (loss)